Does Jersey Mike's guarantee a franchisee's note, lease, or obligation?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
t Agreement | N/A |
ITEM 10. FINANCING
Company does not offer direct or indirect financing and does not guarantee your note, lease or obligation. If you are interested in obtaining a loan guaranteed by the United States Small Business Administration ("SBA"), Company is listed on the F ranchise Registry, which means you will receive expedited loan proc essing though the SBA. Please visit the Franchise Registry's website at www.franchiseregistry.com for more information.
However, as part of the Coach Rod Smith Program, JMFS will provide participants with loans to pay for the capital costs associated with the development of the Restaurants. At JMFS's discretion, JMFS may provide such financing for up to 100% of the Restaurant's development costs, but the total amount of financing will vary by location. However, JMFS may require that the Coach Rod Smith Program participants contribute up to 20% of the development costs on their own, which JMFS would then only finance 80% of the Restaurant's development costs. At JMFS's discretion, a participant in the Coach Rod
Smith Program may be allowed to include the initial franchise fee and real estate and construction fee in the amount financed with JMFS.
Candidates for the Coach Rod Smith Program will be managers of existing Je rsey Mike's restaurants nominated by senior management of JMFS. Not all nominees will be granted the right to participate in the Coach Rod Smith Program. JMFS will select individuals in its sole discretion. If you are selected to participate, and you enroll, in the Coach Rod Smith Program, you will be required to execute an amendment to the Franchise Agreement, a Promissory Note with Guaranty and Assumption of Obligations, and a Security Agreement, examples of which are attached as Exhibit M of this Disclosure Document.
Source: Item 10 — FINANCING (FDD pages 33–35)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, Jersey Mike's typically does not offer direct or indirect financing and does not guarantee a franchisee's note, lease, or obligation. However, there is an exception through the Coach Rod Smith Program.
As part of the Coach Rod Smith Program, Jersey Mike's may provide participants with loans to cover the capital costs associated with developing their restaurants. Jersey Mike's has the discretion to finance up to 100% of the restaurant's development costs, with the total financing amount varying by location. In some cases, participants in the Coach Rod Smith Program may be required to contribute up to 20% of the development costs themselves, with Jersey Mike's financing the remaining 80%. Participants in the Coach Rod Smith Program may be allowed to include the initial franchise fee and real estate and construction fees in the amount financed with JMFS.
To be eligible for the Coach Rod Smith Program, candidates must be managers of existing Jersey Mike's restaurants and be nominated by senior management of JMFS. Selection for participation in the program is at the sole discretion of JMFS, and not all nominees will be granted the right to participate. If selected and enrolled in the Coach Rod Smith Program, franchisees will be required to execute an amendment to the Franchise Agreement, a Promissory Note with Guaranty and Assumption of Obligations, and a Security Agreement.